NZ tax cuts may be possible through sustainable Govt procurement

Tax cuts are possible if the New Zealand Government changes the way it buys goods and services, a report shows.

The Sustainable Procurement in Government: New Opportunities for Business report by the New Zealand Business Council for Sustainable Development said the Government could save up to $1.6 billion a year.

The savings would come from buying goods that were cheaper over their whole life, not just on the day of purchase, the report said.

The practice is known as sustainable procurement.

Other governments and businesses, including in Denmark, Finland and the United Kingdom, that have adopted sustainable procurement save between 8 and 30%, the report said.

The New Zealand Government spends between $12 billion to $20 billion a year and local and regional councils $5.6 billion, the report said.

"Billions are at stake," council chief executive Peter Neilson said.

"There's a major shift happening here and internationally.

"The savings are so compelling if this practice were applied to all central government buying, the country could afford another round of tax cuts."

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